-LRB- CNN -RRB- -- In an ever-evolving , increasingly crowded beverage market , Starbucks is waking up and smelling the coffee . The problem is it 's not their house blend .

`` Here 's a statistic that people are surprised by . Despite the long-term success that we 've enjoyed , we have less than 10 percent share of coffee consumption in North America . And less -LSB- than -RSB- 1 percent share internationally , '' Starbucks Chairman , President and CEO Howard Schultz told CNN Money .

Advertising Age also recently pointed out that despite Starbucks being the world 's largest coffeehouse chain with more than 13,000 locations in more than 50 countries , even its most devout customers purchase only three of every 10 cups of coffee they drink from Starbucks .

So , who is stealing Starbucks ' mojo ?

Folgers , a division of J.M. Smucker Co. , is still the largest producer of retail packaged coffee in the United States . Its coffee brands include Folgers and Millstone , and it also manufactures and distributes Dunkin' Donuts coffee to sell in grocery stores .

Then there is the other American coffee titan , Maxwell House , which is a Kraft Foods brand .

Kraft reported soaring earnings in its 2010 first quarter , linking the growth to new advertising and innovation behind existing Kraft brands such as Maxwell House .

This competition is stirring Starbucks to step up its home-brewed strategy , partially by adding some flavor .

An AC Nielsen panel recently found that more than 11 percent of American households purchase flavored coffee for home use , making it a $ 265 million business in the United States .

Starbucks Corp. will enter the fray in June when Starbucks Natural Fusions , in vanilla , caramel and cinnamon , arrives at grocery stores .

Additionally , Starbucks wants to capture a larger share of the U.S. brewed coffee market by leaning on its VIA Ready Brew line and Seattle 's Best coffee brand to increase the number of distribution points . Starbucks acquired its former competitor , Seattle 's Best Coffee , seven years ago .

`` We are uniquely positioned to reach into these channels because of the brand equity and trust we build with the customers who come into our stores , '' Starbucks said in a statement to CNN .

Seattle 's Best , in part , will take aim against Starbucks ' typically lower-priced , quick-service rivals such as McDonald 's and Dunkin' Donuts . In a new rebranding effort , Starbucks plans to distribute the Seattle 's Best brand in Burger King and Subway restaurants nationwide .

McDonald 's coffee sales have increased every year since the company first introduced its McCafe line of premium coffee in 2006 . In April , McDonald 's announced its U.S. comparable sales rose 3.8 percent , citing beverages , including the new McCafe offerings such as Frappes , as a top contributor to that growth .

Despite all this , Starbucks CEO Schultz said the expanding marketplace might just be an advantage to all of its players .

`` The level of awareness that was created by McDonald 's ' tens of millions of dollars of advertising created more trial in the marketplace and differentiation . ''

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Starbucks wants a bigger share of N. American coffee market than its current 10 percent

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Folgers is the largest producer of retail packaged coffee in the United States

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Starbucks to put its Seattle 's Best brand in Burger King and Subway

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Starbucks flavored coffees -- vanilla , caramel , cinnamon -- head to grocery stores in June